Eurostar Vs. Shinkansen Brief Overview Background

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Eurostar Vs. Shinkansen Brief Overview Background

MIT Civil Engineering – 1.011 Project Evaluation Spring Term 2003 Eurostar vs. Shinkansen Brief Overview Shinkansen – Background References – Time Line – Statistics Shinkansen – Costs and Benefits – http://www.ieee.org/organizatio ns/history_center/milestones_ph – Risks and Uncertainties otos/shinkansen.html – http://www.japanesestudies.org VS. Eurostar .uk/discussionpapers/Hood.html – http://www.jei.org/Archive/JEIR – Background 98/9840w3.html – Time Line Eurostar – http://www.eurostar.com/dctm/j – Statistics sp/index.jsp – Costs and Benefits – http://www.o- keating.com/hsr/eurostar.htm – Risks and Uncertainties – http://www.b- rail.be/press/E/nieuws/result_eu rostar.html Patrick Hereford Wintana Debessay Background - Shinkansen Time Line World’s first inter-city 1940 – Idea of Shinkansen introduced and high-speed rail system researched through Government Alternate to narrow 1959 – Construction begins gauge tracks that limit 1964 – Inauguration of Tokyo – Shin-Osaka speed service Considered source of – Coincided with Olympics held in Japan national pride 1972-1988 – New Shinkansen service lines Cost overruns from sporadically opened throughout Japan original estimation sporadically opened throughout Japan 1987 – Japan National Railways privatized Risks and Uncertainties Statistics Post-war economy unstable Maximum speed of 300 km/hr, Average speed of 286.1 km/hr Was train service the best way to go? What about highways? No fatalities on the service due to collision, derailment, etc. Topographic obstacles More than 280 Shinkansen trains operate Ridership estimations between Tokyo and Osaka each day Daily ridership of over 360,000 passengers Wintana Debassay, Patrick Hereford Page 1 MIT Civil Engineering – 1.011 Project Evaluation Spring Term 2003 Cost – Benefit Analysis Background - Eurostar High construction costs to be compensated Longest Passenger Train in the World (20 by expected high revenues cars long per train) Government project rather than profit- Europe's First International Train to take seeking firm advantage of the Channel Tunnel – Costs grew Æ added lines and employees Plagued by unreliability during its first few years of operations HUGE Debt ¥37.1 trillion ($274.8 billion) Can reach speeds up to 186 miles per hour – Privatized to 6 companies to carry some debt but can only travel 100 miles per hour in the and earn profit Chunnel Timeline Risks and Uncertainties 1994: First Eurostar commercial services Natural disasters ocurring near the begin from London to Channel Tunnel Paris and Brussels 1995: Ashford station Ridership during Eurostar’s opening opens a direct service from London to Safety of the Eurostar Disneyland Paris 1996: Service expands to Moutiers and Bourg St Maurice from Ashford 1998: Opens facilities and renovations at Paris Gare du Nord Statistics Cost-Benefit Analysis Maximum speed reached is 186 mph Eurostar cost approximately $31 7.7 million riders during the 2002 fiscal million for the entire project year Crash in 2000 cost approximately $850 Will reach the profit zone at the end of million 2003 if all goes well Will obtain a profit after the 2003 No severe injuries during the crash of fiscal year 2000 Wintana Debassay, Patrick Hereford Page 2.

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